QUESTION 15The following financial information is available for Beasties upper and lower divisions.UpperLowerRevenues$850,000$700,000Operating Expenses470,000460,000Operating Income$380,000$240,000Assets Invested$2,000,000$1,100,000What is the ROI for the Upper Division?21.8%17.9%19.0%24.1%

ROI is the rate of return calculated by dividing the operating income by assts invested in business…

Answered: The following financial information is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales $ 750,000 Net operating income $ 45,000 Average operating assets $ 250,000 Stockholders' equity $ 75,000 Residual income $ 15,000 For the past year, the turnover used in ROI calculations was
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Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below. Alpha Beta Gamma Sales $525,000 $625,000 $475,000 Oper. Exp. $465,000 ? $437,000 Oper. Income $60,000 $75,000 ? Inv. Assets ? ? $380,000 ROI 0.2000 0.1500 ? Sales Margin ? ? 0.0800 Cap. Turn ? 1.25 ? Use the DuPont Equation to calculate the following values: Return on Investment = Net Operating Income Avg. Invested Assets…

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The following financial information is available for Beasties upper and lower divisions: Upper Lower Revenues $850,000 $700,000 Operating Expenses 470,000 460,000 Operating Income $380,000 $240,000 Assets Invested $2,000,000 $1,100,000 What is the ROI for the Upper Division? 21.8% 17.9% 19.0%